Stalin’s Lost Oil

by Travis Johnson, Stock Gumshoe | April 23, 2010 3:47 pm

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Source URL: https://www.stockgumshoe.com/2010/04/stalins-lost-oil/


18 responses to “Stalin’s Lost Oil”

  1. sozzie says:

    Hi Travis,

    Glad to be aboard finally as an Irregular. A quick note-bigcharts.com did not list PRTDF. Any thoughts? Is it really traded?

    TIA.

  2. dharouff says:

    It’s listed on Yahoo finance stock tickers. It was .60 Friday with a volume of 14,500. It might be worth parking a little bit of your spare change in. I really enjoy reading you Travis. Thanks JW

  3. sozzie says:

    Neither Tdameritrade nor Fidelity will recognize PTDRF or PTDRF.PK or let me trade this online (didn’t talk to anyone). Very annoying, second time this week they have censored a stock purchase.

    SG

  4. Undowkneeme says:

    On Yahoo Finance PETRO MATAD (LSE)’s Symbol is MATD.L

    Last Trade: 58.00 Day’s Range: 50.52 – 60.00
    52wk Range: 13.00 – 52.00 Trade Time: 12:07PM EDT
    Volume: 718,201 Change: 6.00 (11.54%)
    Avg Vol (3m): 214,449 Prev. Close: 52.00
    Open: 50.50

    The StockGumshoe wrote “… they place the order for you in Hong Kong.”
    Does anyone know what it’s number is on the the Hong Kong Exchange?
    If I do decide to “take a nibble” I’d like to buy this in HK. Dollars. E*Trade gives you that option.

  5. mpalmer says:

    Travis-Petro Matad has moved up over 100% since a good drill result. What are your current thoughts?

    July 16th
    Petro Matad Limited
    Significant Oil Discovery in Davsan Tolgoi-1
    Petro Matad yesterday announced that the Davsan Tolgoi-1 well (DT-1)
    on Block XX in Mongolia had been completed, and had found
    significant indications of hydrocarbons in the target Tsagaansav
    formation. Petro Matad holds 100% of the licence. The main points from
    the announcement are as follows:
     The Lower Tsagaansav formation was encountered 150 metres higher
    than the pre-drilling estimates, at 1,075 metres to 1,146 metres.
     The Tsagaansav formation was 71 metres in total thickness, with an
    aggregate net pay of 35 metres in six potentially productive horizons.
     The company reports that several of the horizons gave very good oil
    shows that included cut (oil impregnated core samples), fluorescence,
    oil staining and strong petroliferous odour.
     The company further reported that the drillers encountered fast drilling
    breaks, evidencing the possibility of good reservoir quality.
     The immediate post-drill interpretation is that the well has been drilled
    at a structural crest of a faulted four-way closure, with progressively
    thickening sandstones eastwards from the well.
     Wireline logging will now be carried out to ascertain the character of the
    six potentially productive horizons. The well will then be cased and
    subsequently perforated and tested.
     The rig will be moved to the site of the company’s second well, DT-2.
    We understand that this is likely to be drilled on a somewhat smaller
    structure than DT-1, but with a significantly higher pre-drill chance
    of success.
     The company will also drill a third well immediately after DT-2, but we
    understand that the location of this has yet to be decided.
    We have reviewed our corporate economics and target price in light of the
    DT-1 result. We have included the upside from the DT-2 well and reduced
    our discount to NAV as a result of the reduced commercial risk of the
    project. We have also factored in the weakening of the US dollar from
    $1.45/£ to $1.525/£. Our current NAV for the company is 457p/per share and
    our new target price is 200p.
    The well result confirms that oil has migrated into Block XX in significant
    quantities. However, while the other structures in the North East of Block XX
    have been significantly de-risked, we have not included them in our current
    valuation.

    Official release
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    The Petro Matad Davsan Tolgoi-1 (“DT-1”) exploration well reached a final measured depth of 1,220m on 14 July 2010. The well passed through the Tsagaantsav formation from 1,075m to 1,146m, then entered metamorphic basement. The entire 71m section of the Tsagaantsav formation contained oil shows and elevated mud gas, with indications of live oil through six sandstone and conglomerate units totalling about 35m in aggregate. Several of these intervals included very good shows that included cut, fluorescence, oil staining and a strong petroliferous odour. Good reservoir quality is indicated by fast drilling breaks through all sandstone and conglomerate intervals.
    The lower Tsagaantsav formation was encountered about 150m high to the 3D seismic prognosis, with about half of the anticipated lower Tsagaantsav thickness. The 13 July 2010 operational update by the Company initially reported the uppermost oil shows were within the lower Zuunbayan formation, however these intervals consist of volcaniclastic sandstone and conglomerates that are characteristic of Tsagaantsav reservoirs. The 3D seismic prognosis has been re-interpreted utilising the actual downhole observations. This corroborates that the well drilled the structural crest of the local four-way closure, with progressively thickening lower Tsagaantsav sandstones eastwards from the well.
    Wireline logging will be carried out on the DT-1 well and following completion of that process the drill will move to DT-2.
    Subject to Board consideration and approval, DT-2 is to be a 2,000m test of the lower Tsagaantsav that is located 4 km west of DT-1 within an independent structural closure, and adjacent to the Tamsag Basin generative area.
    A further statement will be made by the Company in due course.
    CEO Douglas McGay said “To have achieved success on the first well has been both a significant achievement for our Company and Mongolia, and also a tribute to our technical teams. Although the scientific testing and analysis of the discovery is only just commencing, DT-1 has gone a long way towards proving that the Davsan Tolgoi Prospect is, in total, as viable a target as first hypothesised. Not only have we encountered significant hydrocarbons, the increase in our scientific knowledge will lessen the risks associated with further wells.
    “It also adds confidence to our assessment of the other leads and prospects on Block XX, and the other 6 sub-basins in Block XX that are still to be explored and tested.
    “We look forward to the future of Block XX with confidence”.
    Technical information in this news release has been reviewed by the Company’s Exploration Manager, Dr James Coogan. Dr Coogan is a petroleum geologist with 29 years of experience in North American and international exploration and development. He is a member of the American Association of Petroleum Geologists and the Geological Society of America.

  6. tornatore says:

    Can somebody explain me what kind of effect this news (see below) has on the value of the share price? I’m a newbee with stock trading. I bought Petro Matad shares at 95,00 pence. I sold them on 140,00 (thnx to Gumshoe! 🙂 I bought new at 129,00p The shares are floating around between 122,00 and 140,00 the last days and I don’t have enough experience to understand where it goes from here. So can anybody share his opinion?

    Thnx

    ———————-

    Petro Matad Ltd
    Exercise of Options
    RNS Number : 6341P
    Petro Matad Limited
    20 July 2010

    

    Petro Matad Limited – “Petro Matad” or the “Company”

    Issue of Equity

    Holding(s) in Company

    Exercise of Options

    The Company has received notification from Petrovis LLC (“Petrovis”) of its instruction to issue to Petrovis 2,000,000 ordinary shares (the “Petrovis New Shares”) in settlement of an outstanding trade liability. The outstanding liability is payable, at the election of Petrovis, in either cash or ordinary shares. The liabilities relate to fees pursuant to a Services Agreement dated 19 June 2009 whereby Petrovis provided services to the Company, including assistance with fund raisings and expansion activities. The Services Agreement stipulated a fee of either £280,000 or 2,000,0000 ordinary shares.

    Petrovis has requested that the Petrovis New Shares be allotted as specified below:

    Petrovis

    1,167,000

    Forestberries LLC

    683,000

    Ms Davaanyam Enkhchimeg

    150,000

    Ms Davaanyam Enkhchimeg is also a director of Petro Matad.

    The Petrovis New Shares will rank pari passu with the existing ordinary shares of the Company. Application has been made for the Petrovis New Shares to be admitted to trading on AIM and this is envisaged to occur on 26 July 2010.

    Petro Matad has also been notified that Petrovis LLC has transferred a total of 17,317,000 ordinary shares in the Company to certain of Petrovis LLC’s shareholders and directors, including Ms Davaanyam Enkhchimeg.

    Petro Matad also announces that following the exercise of options by its nominated adviser Westhouse Securities Limited over 966,800 ordinary shares (the “Westhouse New Shares”). These options were exercisable at US$0.75 cents per ordinary share.

    The Westhouse New Shares will also rank pari passu with the existing ordinary shares of the Company. Application has been made for the Westhouse New Shares to be admitted to trading on AIM and this is envisaged to occur on 26 July 2010.

    Following the issue of the Petrovis New Shares and the Westhouse New Shares, there will be 156,701,446 ordinary shares in issue.

    Petro Matad has also been notified that Mr. Douglas McGay’s interest in Petro Matad’s ordinary shares has changed following his disposal on 19 July 2010 of 150,000 ordinary shares at a price of 129p per ordinary share. Mr McGay is a director and CEO of Petro Matad.

    As a consequence of the above disclosures, Petro Matad understands that the following changes will occur to the following disclosable shareholdings:

    Previous Shareholding

    New Shareholding

    Percentage of Petro Matad’s Issued Share Capital

    Petrovis LLC

    50,190,032

    34,040,032

    21.72%

    Forestberries LLC

    0

    11,000,000

    7.02%

    Mr Douglas McGay

    3,950,000

    3,800,000

    2.43%

    Ms Davaanyam Enkhchimeg

    200,000

    2,550,000

    1.63%

    Further information about the Company:

    Petro Matad Limited

    Douglas McGay- CEO

    +976 11 331099

    Westhouse Securities Limited

    Richard Baty/Petre Norton

    +44 (0)20 7601 6100

    Note to Editors:

    About Petro Matad Limited

    Petro Matad is the parent company of a group focused on oil exploration, as well as future development and production in Mongolia. The group holds the sole operatorship of three Production Sharing Contracts with the Government of Mongolia. The principal asset is the PSC for Block XX, a petroleum block of 14,250km² in the far eastern part of the country. The two other blocks, IV and V are located in central Mongolia and jointly cover 73,498km².

    Petro Matad Limited is incorporated in the Isle of Man under company number 1483V. Its registered office is at Victory House, Prospect Hill, Douglas, Isle of Man, IM1 1EQ.

    This information is provided by RNS
    The company news service from the London Stock Exchange

    END

  7. mjones76 says:

    Gumshoe, my email inbox is filled with Stansberry promos for “the Online Bucket System”. What the heck is ti, any idea? thanks, love your comments.

  8. roo404 says:

    Tom, I’ve been getting them too. My best guess is selling credit spreads.

  9. srdoc says:

    The pitch said ( I think ) that it did not involve selling or buying options. My being illterate about options makes the whole think more mysterious but certainly sounds intriguing. It also sounds too good to be true so 99% chance of being another scam.

  10. duffy says:

    Has anyone invested in TX Eagle Ford oil exploration? What do you think?

  11. john connor says:

    Not sure where to post a question about a current tease out there. I thought would post it here. Has anyone heard the latest Byron King tease about a canadian oil company that owns “huge” reserves in Namibia?

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